CSR expenditure

[Sanjeev Jain]

Is 80 G deduction allowed on payments made for CSR expenditure if such entities are registered for the purpose of Sec-80G?

[Guest]

No specific tax exemptions have been extended to CSR expenditure per se. Finance Act, 2014 also clarifies that expenditure on CSR does not form part of business expenditure.

Section 80G applies in respect of a DONATION made to a specific fund or institution. One of the condition applicable of allowability of deduction u/s 80G is that the institution or fund issues to a person making the donation a certificate to the effect that it maintains separate books of account in respect of such business and that the donations received by it will not be used, directly or indirectly, for the purposes of such business;

THEREFORE, 80G DEDUCTION IS NOT ALLOWED ON CSR EXPENDITURE MADE.

AI Summary

CSR Expenditures Do Not Qualify for Section 80G Tax Deductions; Not Considered Business Expenses or Eligible Donations. A user inquired whether payments made for Corporate Social Responsibility (CSR) expenditure qualify for a Section 80G deduction if the entities are registered under this section. The response clarified that CSR expenditures are not eligible for specific tax exemptions and are not considered business expenses. Section 80G deductions apply to donations made to specific funds or institutions, provided they issue a certificate confirming separate accounting and non-use of donations for business purposes. Consequently, CSR expenditures do not qualify for 80G deductions.